Banks Have No Intention To Use Bailout Money To Make Loans

New York Times:

"Chase recently received $25 billion in federal funding. What effect will that have on the business side and will it change our strategic lending policy?"

It was Oct. 17, just four days after JPMorgan Chase's chief executive, Jamie Dimon, agreed to take a $25 billion capital injection courtesy of the United States government, when a JPMorgan employee asked that question. It came toward the end of an employee-only conference call that had been largely devoted to meshing certain divisions of JPMorgan with its new acquisition, Washington Mutual.

Read the whole story: New York Times

Comments

[OkayLady]

Shock of Shocks.. I've got mine, why don't you go steal your own.

What a motto to live by.

This country has so much cleaning up to do. We have to change our entire corporate culture, our entire American culture. We have to make sure that like slavery, the idea of corporate theft and harm for profit is never acceptable again, and we need to get the laws reinstated and enforced that would have prevented this mess.

Obama/Biden 08 - Change sweet Change!

[JBS]

Hope you don't get disappointed, but Obama/Biden means Paulson gets replaced by Rubin - IF he gets replaced.

Obama's "advisors" are already floating the idea of keeping Paulson on into an Obama administration.

[craneman]

Hopefuly, Robert Rubin will be the man at Treasury, as he was instrumental in the deficit reduction in the Clinton years. It will be a hot day in Siberia if it happend under Paulson.

[fcsakes]

After paying off all the CEO's there won't be any left for loans.

They should have given the money to the middle class - then they would have seen some economic stimulation.

[SanityNow]

Loans? The hell with that !
When the market bottoms out, bank investors will feast.

If they had given that same money to every tax payer,
THEN you would have seen a stimulated economy.

[joebhed]

Again, as far as "giving" that money to taxpayers.
NOT A PROBLEM.

Lincoln did it, paying the troops after the banks, both US and foreign, wanted 30 percent interest.

It was $450 Million back when a dollar was something to respect.

Public money now.
Abolish the FED.
Install the Chicago Plan.

[DAE]

$750,000,000,000/300,000,000 = $2500/person. Redistributing income from the bottom to the top, i.e. instead of spreading the wealth, concentrating it. If Obama's message is "spread the wealth" then McCain's must be "concentrate the wealth."

[DAE]

Those of us who have not been totally bamboozled by the MSM propaganda machine and the shock and awe governance of the Bush administration are not in the least surprised. Boom and bust are part and parcel of our economic system and the banksters and financiers who rule the roost could care less about us plebs. Lots of money can be made for the gated community crowd during an economic depression. Its dog eat dog and may the meanest and orneriest win.

[DannyEastVillage]

Yes, Speaker Pelosi? You were saying...?

[joebhed]

""I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a money aristocracy that has set the government at defiance. The issuing power of money should be taken from the banks, and restored to the people to whom it belongs."" - Thomas Jefferson

""Banks have done more injury to the religion, morality, tranquillity, prosperity and even wealth of the nation than they can have done or ever will do good."" - President John Adams in 1819

""I have two great enemies, the southern army in front of me and the financial institutions in the rear. Of the two, the one in my rear is the greatest foe. The Government should create, issue and circulate all the currency and credit needed to satisfy the spending power of the Government and the buying power of consumers. Money will cease to be master and become the servant of humanity. Democracy will rise superior to the money power."" - Abraham Lincoln.

Abolish the banker's private debt-money system.
Establish the Chicago Plan for Monetary Reform.

[HonorJusticeTruth]

This article is a prime example of why bottom up seeding of the economy is probably more effective than top down. JPMorgan is basically saying we are going to let the government pay for us leveraging ourselves into a power position, and even if the economy fails, we'll be around and profit from the pieces, since it won't have cost JPMorgan anything.
Of course, all this revelation will cause to change is how JPMorgan and other's allow conference calls and call-ins. Dam up the leak, don't fix the practice.

[rodhemeon]

''Domestic Terrorism''.....................

Picture the scene on the ''Wall Street'' trading floors as..............

McCain and Palin walk into the ''Rose Garden'' to address the Nation........

[NWGuy]

Obviously, no surprise. Banks, like republicans, value profit and money above all else, including the welfare of the country. Anything that results in more profit is legit and is fair game. Goldman Sachs is using their share of the bailout rewriting their charter to concentrate on only their wealthiest patrons and will no longer act as a traditional bank, no more loans to the peasants!

Without the strictest of regulations guarding the tax payor bailout, the people behind the failures will continue to do what they have always done -- look out for themselves first, last and always.

[dhertzfe]

GWB does it again. Helping his cronies line their pockets after selling us bad bag of goods. No wonder why they didn't want any oversight and wanted no litigation review of their actions. Capitalism at its finest.

[ROBOT8]

THAT MONEY IS ONLY GOING TO BE USED TO GO AFTER THE PEOPLE WHO ARE ALREADY DOWN ON THEIR KNEES IN DEBT ALREADY. MANY WILL NEVER GET BACK ON THEIR FEET.......THOUGH CONSOLIDATED CORPORATIONS WILL COME BACK STRONGER THAN EVER......I THOUGHT MONOPOLIES WERE ILLEGAL......OH YES SO IS VIOLATION OF THE FIRST AMMENDMENT,,,,,,,

[joebhed]

one response.
Stop shouting.
Everyone is agitated already.

[DMcD]

Whatever happened to "Tar and Feathers" --- costs a whole lot less and gets the point across nicely.

[Anastasia]

Or, how about a guillotine across from the NYSE?

[quantumspin]

President Truman said, 'how many times do you have to be hit over the head before you realize who is hitting you?'

Are we surprised that our government, our Treasury, our Congress, and Hank Paulson who ran Goldman Sachs, are concerned about citizens? This is like China, or Zimbabwe, where the leaders live in gold plated splendor while the citizens live the mud. This is like Haiti. This is like a third world country.

Our Congress has been as complicit in this as they were in Gitmo and Abu Gharib torture, as complicit in this as they were in FISA, in the Patriot Act, as in telecom immunity.

When will it sink in that our government and financial institutions (the Fed is a PRIVATE CORPORATION!) have used US citizens as an ATM machine and are now kicking us to the curb as they head for their vacation ranches overseas with their bonus payments in the billions.

We are fools.

[dhertzfe]

How about just like what Sadaam did to his people and forced them to live in poverty?

[LHoney]

Yea, and look what happened to him finally...

[OneLiberalLady]

Are they allowed to use our taxpayer dollars to feather their own nest? Essentially we taxpayers are paying for them to create huge monopolies. In the long run that is not going to help us at all; it is certainly not going to stave off a recession. Can't the treasury take back the money?

[joebhed]

Can they? Oh, yes.

And, essentially, yes, that is what we have been doing for a hundred years.

No, it is not going to help us, you know, what Zappa called "the other people".
Rather it is part of the design of the "contraction" phase of the capitalist business cycle.

Finally, can the Treasury take back the money.
What the Treasury CAN do and what the Treasury does it two different things.

As Lincoln pondered the need to have the Treasury issue public money, he fretted over its acceptance. "Will the people accept it?", he asked.
His assistant, Colonel Taylor said:
""The people or anyone else will not have any choice in the matter, if you make them full legal tender. They will have the full sanction of the government and be just as good as any money; as Congress is given that express right by the Constitution.""

Public money.
Think about it.

[ibsteve2u]

Hmmm...haven't said it for awhile, so here goes:

This Administration makes the Teapot Dome boyz look like a bunch of amateurs.

[ErnestineBass]

True...except that Albert Bacon Fall, the Senator charged in that scandal, was tried and ultimately convicted (which was upheld by the SCOTUS in 1931) for accepting a bribe. Somehow I doubt that will be "allowed" to happen again.